Government backs off of top inheritance tax rate in proposed legislation

In a Friday morning press conference, National Assembly President Gabriela Rivadeneira announced that the proposed top inheritance tax rate of 77.5% is being reduced to 47.5% for all classes of inheritors.

National Assembly President Gabriela Rivadeneira announces a reduction to the proposed top inheritance tax rate on Friday.

Last week, President Rafael Correa had reduced the top rate for direct heirs to 47.5% but said that others heirs would be taxed 77.5% for estates valued above $849,000.

Rivadeneira said that additional changes to the proposed legislation were possible before the full assembly begins debate on the bill later this month.

Those opposed to changes in inheritance tax rates have protested throughout the week in major Ecuadorian cities, including Quito, Cuenca, Manta, Santo Domingo, and Guayaquil. The protests have turned violent in Quito where pro-Correa forces have clashed with the opponents of the legislation. In Cuenca, protesters complained that pro-government supports threw eggs and paint at them Friday night.

In Cuenca and Guayaquil, smaller protests and counter-protests have been staged without major incidents.